KASI PANDIYAN MUTHU RAMALINGAM,TIRUNELVELI vs. INCOME TAX OFFICER, WARD -4, TIRUNELVELI

This appeal filed at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), Delhi dated 24.03.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.

At the very outset, we notice that the First Appellate Authority’s (FAA) order is ex-parte, since there was no compliance from the assessee to the four notices issued from the office of the First Appellate Authority. We also note that the FAA had dismissed the appeal of the assessee in-limine without adjudicating the issues on merits.

The Ld.AR submitted that the assessee could not respond to the notices or appear before FAA during the appellate proceedings since the assessee was not tech savvy and not accessed the mails. The Ld.AR further submitted that the FAA has dismissed the appeal for non-compliance and not on merits. It was prayed, in the interest of justice and equity, assessee may be provided with one more opportunity to present its case before the AO.

The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA and there is no violation of principles of natural justice. However, he could not controvert the fact that the FAA has dismissed the appeal for non-compliance.

We have heard rival submissions and perused the materials on record. We noted that the FAA has simpliciter dismissed the appeal for non-compliance and not adjudicated or decided merits of the case. We find that appellate authority has no jurisdiction to dismiss the appeal for default of non-compliance without going into merits. The FAA is bound to decide the appeal on merits even in the absence of assessee. This view of ours is supported by the decision of Hon’ble High Court of Madras in the case of Southern Steel Industries vs. AAC (CT), reported in [1996] 101 STC 273 (Mad). In term of the above, the order of CIT(A)-NFAC is set aside and matter remanded back to his file for fresh adjudication on merits after allowing reasonable opportunity of being heard to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.

In the result, the appeal filed by the assessee is allowed for statistical purposes.